Let’s dig into the relative performance of TreeHouse Foods (NYSE: THS) and its peers as we unravel the now-completed Q4 shelf-stable food earnings season.
As America industrialized and moved away from an agricultural economy, people faced more demands on their time. Packaged foods emerged as a solution offering convenience to the evolving American family, whether it be canned goods or snacks. Today, Americans seek brands that are high in quality, reliable, and reasonably priced. Furthermore, there's a growing emphasis on health-conscious and sustainable food options. Packaged food stocks are considered resilient investments. People always need to eat, so these companies can enjoy consistent demand as long as they stay on top of changing consumer preferences. The industry spans from multinational corporations to smaller specialized firms and is subject to food safety and labeling regulations.
The 21 shelf-stable food stocks we track reported a slower Q4. As a group, revenues were in line with analysts’ consensus estimates while next quarter’s revenue guidance was 0.5% above.
While some shelf-stable food stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3% since the latest earnings results.
TreeHouse Foods (NYSE: THS)
Whether it be packaged crackers, broths, or beverages, Treehouse Foods (NYSE: THS) produces a wide range of private-label foods for grocery and food service customers.
TreeHouse Foods reported revenues of $905.7 million, flat year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with EBITDA guidance for next quarter missing analysts’ expectations.
"We closed a challenging 2024 with sequentially improved net sales trends, gross profit margin, and Adjusted EBITDA margin, all of which were in-line with our updated expectations," said Steve Oakland, Chairman, Chief Executive Officer, and President.
The stock is down 18.6% since reporting and currently trades at $27.06.
Read our full report on TreeHouse Foods here, it’s free.
Best Q4: Lancaster Colony (NASDAQ: LANC)
Known for its frozen garlic bread and Parkerhouse rolls, Lancaster Colony (NASDAQ: LANC) sells bread, dressing, and dips to the retail and food service channels.
Lancaster Colony reported revenues of $509.3 million, up 4.8% year on year, outperforming analysts’ expectations by 2.8%. The business had a very strong quarter with an impressive beat of analysts’ EBITDA estimates.
Lancaster Colony scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 5.7% since reporting. It currently trades at $176.01.
Is now the time to buy Lancaster Colony? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Lamb Weston (NYSE: LW)
Best known for its Grown in Idaho brand, Lamb Weston (NYSE: LW) produces and distributes potato products such as frozen french fries and mashed potatoes.
Lamb Weston reported revenues of $1.60 billion, down 7.6% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted full-year revenue guidance missing analysts’ expectations.
Lamb Weston delivered the weakest full-year guidance update in the group. As expected, the stock is down 33.1% since the results and currently trades at $52.23.
Read our full analysis of Lamb Weston’s results here.
J&J Snack Foods (NASDAQ: JJSF)
Best known for its SuperPretzel soft pretzels and ICEE frozen drinks, J&J Snack Foods (NASDAQ: JJSF) produces a range of snacks and beverages and distributes them primarily to supermarket and food service customers.
J&J Snack Foods reported revenues of $362.6 million, up 4.1% year on year. This print met analysts’ expectations. Aside from that, it was a disappointing quarter as it produced a significant miss of analysts’ adjusted operating income estimates.
The stock is down 2.8% since reporting and currently trades at $129.19.
Read our full, actionable report on J&J Snack Foods here, it’s free.
McCormick (NYSE: MKC)
The classic red Heinz ketchup bottle’s competitor, McCormick (NYSE: MKC) sells food-flavoring products like condiments, spices, and seasoning mixes.
McCormick reported revenues of $1.80 billion, up 2.6% year on year. This result topped analysts’ expectations by 1.2%. Taking a step back, it was a mixed quarter as it also recorded a decent beat of analysts’ EPS estimates but a slight miss of analysts’ EBITDA estimates.
The stock is up 11.3% since reporting and currently trades at $81.48.
Read our full, actionable report on McCormick here, it’s free.
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